![]() ![]() Criminal prosecutions are typically limited to intentional and clear violations such as when competitors fix prices or rig bids. Although most enforcement actions are civil, the Sherman Act is also a criminal law, and individuals and businesses that violate it may be prosecuted by the Department of Justice. The penalties for violating the Sherman Act can be severe. These acts are " per se" violations of the Sherman Act in other words, no defense or justification is allowed. These include plain arrangements among competing individuals or businesses to fix prices, divide markets, or rig bids. On the other hand, certain acts are considered so harmful to competition that they are almost always illegal. ![]() ![]() For instance, in some sense, an agreement between two individuals to form a partnership restrains trade, but may not do so unreasonably, and thus may be lawful under the antitrust laws. The Sherman Act outlaws "every contract, combination, or conspiracy in restraint of trade," and any "monopolization, attempted monopolization, or conspiracy or combination to monopolize." Long ago, the Supreme Court decided that the Sherman Act does not prohibit every restraint of trade, only those that are unreasonable. Here is an overview of the three core federal antitrust laws. Yet for over 100 years, the antitrust laws have had the same basic objective: to protect the process of competition for the benefit of consumers, making sure there are strong incentives for businesses to operate efficiently, keep prices down, and keep quality up. Courts have applied the antitrust laws to changing markets, from a time of horse and buggies to the present digital age. The antitrust laws proscribe unlawful mergers and business practices in general terms, leaving courts to decide which ones are illegal based on the facts of each case. With some revisions, these are the three core federal antitrust laws still in effect today. About the FTC Show/hide About the FTC menu itemsĬongress passed the first antitrust law, the Sherman Act, in 1890 as a "comprehensive charter of economic liberty aimed at preserving free and unfettered competition as the rule of trade." In 1914, Congress passed two additional antitrust laws: the Federal Trade Commission Act, which created the FTC, and the Clayton Act.News and Events Show/hide News and Events menu items.Advice and Guidance Show/hide Advice and Guidance menu items.Competition and Consumer Protection Guidance Documents.Enforcement Show/hide Enforcement menu items. ![]()
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